Strategist: More consolidation needed

JulieRannazzisi

NEW YORK (CBS.MW) -- John Hughes, equity analyst at Epiphany Equity Research, said some last minute "window dressing," as portfolio managers scramble to embellish their statements for quarter end, could be stoking stocks Monday. He believes equities need to consolidate recent gains until the fundamental picture for U.S. earnings and economic growth improves. But Hughes expects sell-offs to be orderly -- meaning on low volume and not very aggressive in terms of price pullbacks -- as they have been over the past two weeks. "The Dow may consolidate down to the 8,800 area and the S&P down to around 950. It would be constructive for the market over the longer term to build a base before [resuming its upward trend]," Hughes said.

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